New Queensland Project to Boost Australian-Made Artillery Manufacturing

Why It Matters

The initiative strengthens sovereign defence manufacturing, cuts reliance on overseas supply chains and aligns with the 2026 National Defence Strategy’s push for rapid, self‑reliant munitions availability.

Key Takeaways

• Rheinmetall NIOA to forge 155mm M795 shells in Queensland
• Project creates up to 50 high‑skill jobs during construction
• Initial capacity 15,000 artillery rounds per year, scalable later
• Australia will have two large‑calibre forging lines by 2028
• $9.2 million Thales upgrade modernises 5‑inch naval gun line

Pulse Analysis

Australia’s defence posture has increasingly focused on domestic production after recent global supply‑chain disruptions highlighted the risks of overseas dependence. The 2026 Integrated Investment Program earmarks up to $36 billion over ten years to build a resilient munitions ecosystem, ensuring that critical artillery and naval components can be sourced locally. By expanding sovereign capability, the government aims to shorten lead times, lower costs, and provide a strategic buffer that supports both national security and allied interoperability.

The new Maryborough forge, funded at A$72 million, will cast 155mm M795 projectiles—the standard round for the M777A2 lightweight howitzer and the AS9 Huntsman self‑propelled system. With an initial output of 15,000 rounds annually, the facility can scale to meet rising demand, potentially feeding export markets in the Indo‑Pacific. The project also creates up to 50 highly skilled positions, reinforcing a talent pipeline in advanced metallurgy and precision engineering, while embedding a supply‑chain hub that can respond swiftly to operational requirements.

Complementing the Queensland effort, a $9.2 million upgrade at Thales Australia’s Benalla plant will automate the 5‑inch naval gun line, extending the life of existing naval ordnance and improving production efficiency. Together, these investments signal a broader shift toward a self‑sufficient defence industrial base, positioning Australia as a regional hub for high‑value munitions. The dual‑forge capability not only safeguards ADF readiness but also opens avenues for export contracts, strengthening economic ties with allies such as the United States and Japan.